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International Academic Journal of Information Sciences and Project Management | Volume 3, Issue 4, pp. 572-602
572 | P a g e
FACTORS INFLUENCING USE OF ALTERNATIVE
DISPUTE RESOLUTION IN CONSTRUCTION
PROJECTS: CASE OF IMENTI NORTH SUB COUNTY,
MERU COUNTY
Hiram Kirimi
Master of Arts in Project Planning and Management, University of Nairobi, Kenya
Dr. John Wanjohi
Department of Chemistry, University of Nairobi, Kenya
©2019
International Academic Journal of Information Sciences and Project Management
(IAJISPM) | ISSN 2519-7711
Received: 30th July 2019
Accepted: 9th August 2019
Full Length Research
Available Online at:
http://www.iajournals.org/articles/iajispm_v3_i4_572_602.pdf
Citation: Kirimi, H. & Wanjohi, J. (2019). Factors influencing use of alternative dispute
resolution in construction projects: Case of Imenti North Sub County, Meru County.
International Academic Journal of Information Sciences and Project Management, 3(4),
572-602
International Academic Journal of Information Sciences and Project Management | Volume 3, Issue 4, pp. 572-602
573 | P a g e
ABSTRACT
Regarded as a frequent occurrence, disputes
in construction projects occasioned by
substandard communication of impractical
clients’ expectations, defective works and
delays in architectural designs significantly
contribute to adverse effects on project
results. Despite these and the numerous
demerits linked to litigation majority of
clients, contractors and construction
consultants in Kenya still opt for it as
opposed to Alternative Dispute Resolution
(ADR) approaches to resolve disputes in
construction projects. The purpose of this
study was to establish the factors influencing
use of alternative dispute resolution in
construction projects in Imenti North Sub-
County, Meru County, Kenya. In particular
it examined the influence of: lack of
awareness, preservation of business
relationships, cost minimization and
communication and documentation issues on
the use of ADR in construction projects
disputes. The research was guided by two
theories; Theory of Planned Behavior and
Transaction Cost Economics Theory and
will be support by the Stair-Step Model of
Dispute Resolution. The research embraced
use of descriptive survey research design.
Target population is of 255 respondents. The
sample size was of 45 (n=45), Contractors,
12 (n=12) Consultants (Architectures,
Quantity Surveyors and Structural
Engineers) and Construction Projects Clients
75 (n=75) that was singled out to take part in
the investigation. Stratified sampling and
Simple random sampling were made use of
to pick the sampled subjects. Questionnaires
were used to collect primary data in the
study locale. Data was analyzed
qualitatively and quantitatively by
employing SPSS version 22.0, it was then
presented in Frequency and Percentage
tables and a multivariate regression model
used. The study found that scarcity of
knowledge on mediation does influence use
of alternative dispute resolution in
construction projects disputes. The study
found that reduced adversarial attitudes and
hostility between client, contractor, quantity
surveyor and architecture influence use of
alternative dispute resolution in construction
projects disputes. The study also found that
elimination of litigation costs influences use
of alternative dispute resolution in
construction projects disputes. The study
also found that privacy of the proceedings
influences use of alternative dispute
resolution in construction projects disputes.
The study concluded that preservation of
business relationships had the greatest
influence on use of alternative dispute
resolution in construction projects in Imenti
North, followed by costs minimization,
followed by communication and
documentation issues while lack of
awareness had the least influence on the use
of alternative dispute resolution in
construction projects in Imenti North. The
study recommended that there was need for
high profile public promotional campaigns.
The campaigns would need to be continuous
since most users of ADR services tend to
believe that they are one-off users who may
never again have a significant land dispute.
The study also recommends that supplies
should be exhaustively elaborated and
detailed in the contract conditions, designs
and specifications i.e. nullify, if possible,
International Academic Journal of Information Sciences and Project Management | Volume 3, Issue 4, pp. 572-602
574 | P a g e
opportunities for differing interpretations of
the requirements of the documents.
Key Words: alternative dispute resolution,
construction projects, Imenti North Sub
County, Meru County
INTRODUCTION
According to Blake, Browne and Sime, (2014) Alternative Dispute Resolution (ADR) is a
collection of normally discretional or intentional private procedures of conflict resolution
approaches employed with the aim of settling conflicts or disputes. These include; dispute
resolution/review boards (DRBs), expert determination, mediation, adjudication, arbitration and
negotiation (Tolson, 2017). Informed by their inherent merits especially those related to costs
and time, Alternative Dispute Resolution (ADR) approaches are becoming common in settling
construction projects disputes (Chan, 2014). In United States of America (USA) Harrison (2011),
reported the need for cost minimization and that of preservation of business relationships
significantly influenced the use of ADR in resolving construction projects disputes.
In Russia, Yaskova and Zaitseva (2017) reported lack of awareness on alternative dispute
resolution (ADR) particularly on its application procedures significantly influenced its use in
solving construction projects disputes. In the Czech Republic, Nabatova (2017) established
communication and documentation issues influenced the use of ADR in settling of construction
projects disputes. In United Kingdom (U.K), Safinia (2014) observed the need for preservation
of business relationships and cost minimization resulted to the significant use of ADR in settling
construction projects disputes. Further, lack of awareness on ADR particularly on arbitration
limited its use to solve construction projects disputes in Germany as compared to those in
Sweden (Magg and Schmitt, 2010).
In Australia, Gill, Gray, Skitmore and Callaghan (2015) report cost minimization and the need
for preservation of business relationships predominantly influenced the use of alternative dispute
resolution (ADR) to address construction projects disputes. Additionally, in her study, She
(2011) reported communication and documentation issues that affected operations of Dispute
Review Boards (DRBs) led to most disputes in the construction industry settled using litigation
which significantly influenced the use of alternative dispute resolution (ADR) in Australia.
Further, in New Zealand Gillies (2015) communication and documentation issues coupled with
the need to preserve business relationships significantly influenced use of ADR in solving
construction projects disputes.
In Malaysia, Barough, Shoubi and Preece (2013) observed the need to reduce costs and time
linked to litigation influenced the use of ADR in solving of disputes in construction projects. In
Sri Lanka, Gunasena (2010) report the need for preservation of business relationship and cost
minimization significantly influenced the use of ADR in solving of disputes in construction
projects. In Pakistan, Farooqui, Umer and Lodi (2012) lack of awareness on ADR and its
inherent benefits did significantly limit its use in the solving of construction projects.
Additionally, the need to preserve business relationship and documentation issues were identified
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to have significantly influenced use of ADR in solving of disputes in construction projects in
Indonesia (Kurniawan 2015).
Lack of awareness on alternative dispute resolution (ADR) in the construction industry
influenced its adoption in the settling of disputes in construction projects in Kuwait (Sayed-
Gharib, Lord and Price 2011). In Saudi Arabia, Alshahrani (2017) reported lack of awareness on
ADR coupled with communication and documentation issues resulted to the preferred use of
litigation which significantly influenced the adoption of ADR in settling of disputes in
construction projects. In the United Arab Emirates (UAE), Zeidan (2015) reported the need to
cut down costs associated with litigation emanating from time used resulting to project overruns
influenced the use of ADR in solving disputes in construction projects.
In Nigeria, Idowu, Ogunbiyi and Hungbo (2015) reported lack of awareness on alternative
dispute resolution (ADR) had significantly influenced its use in construction projects disputes.
Ezeokoli and Ugochukwu (2018) established cost minimization and the need to maintain
business relationships worked as critical factors that significantly influenced use of ADR in
resolving construction projects’ disputes in Nigeria. Similarly, in Ghana Kodwo (2017),
observed the need to realize cost minimization related with litigation and preservation of
business relationships as critical factors that significantly influenced the use of ADR to solve
disputes within construction projects.
In South Africa, Maiketso and Maritz (2012) report lack of awareness on alternative dispute
resolution (ADR) especially among industry practitioners and their clients influenced its
adoption in the settling of disputes that relate to construction projects. In Swaziland, Mashwama,
Aigbovboa and Thwala (2015) observed the need to realize cost minimization and that of
preservation of business relationships resulted to the significant use of ADR in solving disputes
in construction projects. Further, Musonda and Muya (2011) reported lack of awareness and
minimal knowledge on benefits limited adoption of ADR significantly influencing its use in
solving construction projects disputes in Zambia.
In Egypt, Elziny, Mohamadien, Ibrahim and Abdel Fattah (2014) report communication and
documentation issues in terms of the linking of construction contracts with alternative dispute
resolution (ADR) influenced its use in settling construction projects disputes. However,
Marzouk, El-Mesteckawi and El-Said (2011) had observed the need to realized benefits a cost
minimization through adoption of ADR as the critical factor that significantly influenced its use
in settling disputes in construction projects in Egypt. Further, the need to realize cost
minimization and that of preservation of business relationships worked as critical factors that
influenced use of ADR in solving of construction projects disputes in Ethiopia (Getahun,
Macarubbo and Mosisa, 2016). In Uganda, Mulolo, Alinaitwe and Mwakali (2015) report
communication and documentation issues coupled with the need for cost minimization were the
critical factors that influenced use of ADR in settling of construction projects disputes.
International Academic Journal of Information Sciences and Project Management | Volume 3, Issue 4, pp. 572-602
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STATEMENT OF THE PROBLEM
The predominant goal of parties to construction projects at their outset is fluid running of the
same to their completion. However, dissimilar purposes of groups involved and the inherent
complexity of construction projects that are often characterized by substandard communication
of impractical clients’ expectations, defective works and delays in architectural designs results to
contractual conflicts. These disputes in most cases lead to diverse claims from parties involved
whose attempt to resolve them usually results to litigation; a very expensive and time consuming
undertaking. Despite these demerits and others associated to it, the continued utilization of
litigation especially in Africa is attributable to limited knowledge on existence of Alternative
Dispute Resolution (ADR). In Kenya, the continued use of litigation in settling disputes related
to construction projects has continually led to both a backlog of cases in the judiciary and images
of stalled expensive projects. Litigation which is considered an adversarial approach; lacks in
privacy and is characterized by unending court hearings has also significantly contributed to
damaged business relationships in the construction industry. Notwithstanding, in Imenti North
Sub County also the level of utilization of Alternative Dispute Resolution (ADR) in resolving
construction projects’ disputes is still wanting (National Construction Authority (NCA), 2017).
This has substantially been attributed to failure by both clients and practitioners in the
construction industry to appreciate the efficient and effective nature of ADR in resolving
disputes resulting also to stalled construction projects (NCA, 2017). Further, non-existence of
trainings by the judiciary and government construction authorities has also impeded the adoption
of ADR. Subsequently, the current research study seeks to investigate critical factors influencing
use of Alternative Dispute Resolution (ADR) in settling construction projects’ disputes.
Specifically, this research investigated on the influence of; lack of awareness, preservation of
business relationships, cost minimization and communication and documentation issues on use
of alternative dispute resolution in construction projects disputes.
PURPOSE OF THE STUDY
The purpose of the study was to establish factors influencing use of alternative dispute resolution
in construction projects in Imenti North Sub County, Meru County.
OBJECTIVES OF THE STUDY
1. To determine the extent to which lack of awareness on alternative dispute resolution
influences its use in construction projects in Imenti North;
2. To establish how preservation of business relationships influences the use of alternative
dispute resolution in construction projects in Imenti North;
3. To assess the extent to which cost minimization influences the use of alternative dispute
resolution in construction projects in Imenti North;
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4. To examine how communication and documentation issues influence the use of
alternative dispute resolution in construction projects in Imenti North;
LITERATURE REVIEW
Use of Alternative Dispute Resolution in Construction Projects
Alternative Dispute Resolution (ADR) is prominent in managing disputes in construction
projects. In a study, Callum (2013) observed ADR was gaining popularity in construction
projects in United Kingdom (U.K). Specifically, he asserts arbitration and mediation were more
preferred than adjudication because of their duration in proceedings (Callum 2013).Similarly, in
their study Scherer and Moss (2014) established there was an increased use of ADR in
construction projects in Switzerland. Further, they argued this predominantly emanated from
advantages associated with ADR approaches such as duration of proceedings and irrevocability
of settlements (Scherer and Moss, 2014).
Wong (2011) established ADR had gained popularity in construction projects in Sri Lanka. In
particular, he argued because of its nature of ensuring irrevocability of settlement, adjudication
had been increasingly used in construction projects (Wong, 2011).Lee (2017) established there
was an increase in the use of ADR in construction projects in Malaysia. Specifically, he asserts
construction projects in the country had witnessed an increased use of negotiation and mediation
due to the inherent merits of the two procedure that allow a short duration in settling disputes
(Lee, 2017).
Keršuliene, Zavadskas and Turskis, (2010) established that lack of awareness presented a
substantial adverse influence on decisions to embrace alternative dispute resolution (ADR) in
resolving disputes in construction projects in Lithuania. Specifically, they assert scarcity of
knowledge in the negotiation, mediation, conciliation and arbitration processes significantly
contributed to the limited use of these ADR approaches in settling construction projects’ disputes
(Keršuliene et al., 2010). Similarly, Tazelaar and Snijders (2010) found evidence demonstrating
that lack of awareness had significantly influenced the use of ADR in determining disputes in
construction projects in both Netherlands and Germany. In particular, they assert minimal
understanding of the advantages of the conciliation and mediation processes and lack of
knowledge on how to effectively undertake arbitration proceedings significantly contributed to
most disputes in construction projects resolved using litigation as opposed to ADR (Tazelaar and
Snijders, 2010). However, Spillane et al., (2011) observed concerted efforts to develop
awareness on had presented a substantial positive influence on use of ADR in determining
disputes in construction projects in Ireland. Additionally, they assert awareness workshops,
conference and seminars on mediation had significantly contributed to the embracing of this
ADR method in settling of conflicts in construction projects (Spillane et al., 2011).
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In their study, Hussin and Ismail (2015) found evidence postulating that lack of awareness had
significantly influenced use of alternative dispute resolution (ADR) in resolving conflicts in
construction projects in Malaysia. Additionally, they observed the scarcity of knowledge in
mediation had resulted to limited use of this ADR method in settling of conflicts in construction
projects (Hussin and Ismail, 2015). Similarly, Sarmiento (2013) asserts lack of awareness had a
substantial adverse influence on decision to embrace ADR in settling disputes emerging in
construction projects in the Philippines. Further, he argued scarcity of knowledge on meditation,
minimal knowledge on conciliation and insufficiency of understanding of arbitration negatively
influenced the use of these ADR methods in resolving construction disputes (Sarmiento, 2013).
In their study, Khekale and Futane (2015) also established lack of awareness presented a
significant adverse influence on use of ADR in settling disputes in construction projects in India.
In particular, they assert minimal knowledge on conciliation, mediation and negotiation had a
considerable contribution to the limited embracing of these ADR methods in solving
construction disputes (Khekale and Futane, 2015).
Almutairi, (2015) observed lack of awareness on the possibility of embracing alternative dispute
resolution (ADR) in determining disputes in construction projects had led to an adverse influence
on its use in Saudi Arabia. Specifically, he asserts scarcity of knowledge in the mediation
process, inadequacy of understanding in negotiation and minimal knowledge on how to carryout
conciliation proceedings significantly contributed to the limited use of these ADR methods in
determining construction disputes (Almutairi, 2015). Similarly, Sayed-Gharib, Price and Lord,
(2010) asserts lack of awareness had significantly limited the use of ADR in resolving disputes
emerging in construction projects in Kuwait. In particular, they contend that the existence of
minimal knowledge on how to conduct conciliation proceedings and insufficient understanding
of arbitration, negotiation and mediation negatively influenced decisions to adopt these ADR
methods in determining disputes in construction projects (Sayed-Gharib, et al., 2010). However,
Saeb, Mohd Danuri, Zakaria and Mohamed (2019) found evidence demonstrating that efforts to
create awareness had presented a substantial positive influence on use of ADR in determining
disputes in construction projects in Iran. Additionally, they assert awareness seminars and
workshops had played a pivotal role in disseminating and enhancing knowledge on negotiation,
mediation, arbitration and importance of Dispute Review Boards (DRBs) in determining
construction disputes (Saeb, et al., 2019).
In his study, Onukwube (2011) found evidence demonstrating lack of awareness significantly
influenced embracing of alternative dispute resolution (ADR) for the resolving of disputes in
construction projects in Nigeria. Specifically, he notes minimal knowledge on conciliation,
inadequacy of knowledge in negotiation and insufficiency of understanding of arbitration had a
substantial contribution to the limited use of these ADR methods in settling disputes in
construction projects (Onukwube, 2011).Similarly, Baffour-Awuah, Vroom and Otchere (2011)
established that lack of awareness presented considerable influence on decisions to adopt ADR
in settling conflicts in construction projects in Ghana. In particular, they argued minimal
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knowledge on adjudication significantly contributed to limited use of this ADR method in
resolving disputes in construction projects (Baffour-Awuah, et al., 2011). Further, lack of
awareness had presented a substantial adverse influence on use of ADR in settling disputes in
construction projects in South Africa (Bvumbwe and Thwala, 2011). Additionally, Bvumbwe
and Thwala (2011), assert minimal knowledge in conducting of arbitration, conciliation,
mediation and negotiation proceedings significantly contributed to the limited use of these ADR
methods in resolving construction disputes resulting to the increased use of litigation.
Preservation of Business Relationships and Use of Alternative Dispute Resolution in
Construction Projects
In his study, Overcash (2015) found evidence postulating desire to realize preservation of
business relationships presented a significant influence on the use of alternative dispute
resolution (ADR) in settling conflicts in construction projects in United States of America
(USA). Further, he observed arbitration played a pivotal role in reducing adversarial attitudes
among parties and ensuring fairness in settlement of construction disputes leading to its adoption
for resolving of majority of disputes in construction projects (Overcash, 2015). Similarly,
Tanielian (2012) established that the need for preservation of business relationships had a
substantial influence on decision to adopt ADR in determining disputes emerging during the
implementation of construction projects in Canada. In particular, he argued that arbitration was
considered the most appropriate ADR method for maintenance of business relations due to its
inherent advantageous features that facilitate flexibility of proceedings and elimination of hostile
enforceability of dispute settlements (Tanielian 2012).
Cunningham (2015) found evidence indicating preservation of business relationships had a
significant influence on the use of ADR in resolving disputes in construction projects in Ireland.
Specifically, they assert clients and contractors adhered to guidelines provided by the Royal
Institution of Chartered Surveyors (RICS) on implementation of arbitration for binding decisions
after conciliation and mediation proceedings leading to the extensive use of these ADR methods
in construction disputes (Cunningham, 2015). She, (2011) established that preservation of
business relationship significantly influenced the embracing of alternative dispute resolution
(ADR) in resolving conflicts in construction projects in Australia. Specifically, they identified
Dispute Review Boards (DRB), mediation and negotiation as having been effective in reducing
adversarial attitudes between contractors and clients and facilitated flexibility of proceedings and
ensured fairness was upheld subsequently contributing to preservation of business relationships
(She, 2011). Similarly, Jelodar (2015) found evidence indicating preservation of business
relationships influenced use of ADR in settling disputes in construction projects in New Zealand.
Additionally, they argued inherent attributes of mediation, negotiation and arbitration that
enabled avoidance of diminution of respect among parties and the reducing of adversarial
attitudes between contractors and clients substantively contributed to the use of these ADR
methods in resolving of disputes in construction projects (Jelodar, 2015).
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In his study, Amaradiwakara (2017) observed preservation of business relationships significantly
influenced the embracing of alternative dispute resolution (ADR) in resolving disputes in
construction projects in Sri Lanka. In particular, he argued the inherent advantages of negotiation
that facilitated flexibility of proceedings and were pivotal in reducing adversarial attitudes
between contractors and clients contributed to the use of this ADR method in settling disputes
(Amaradiwakara, 2017).Similarly, Nihaaj (2018) found evidence that the need to maintain
business relationships presented a considerable influence on adoption of ADR in settling disputes
in construction projects in the same country. Specifically, he contends underlying valuable
attributes of arbitration that enabled avoidance of diminution of respect among parties and
elimination of hostile enforceability led to the use of this ADR method in solving disputes in
construction projects (Nihaaj, 2018). However, in their study Main and Hossian (2015) found
evidence that there was limited use of ADR methods in settling disputes in construction projects
for purposes of maintenance of business relationships in Bangladesh. Additionally, they contend
this was because existing ADR implementation mechanisms were weak and could therefore not
eliminate hostility in enforceability of decisions and ensure fairness in settlement of conflicts
(Main and Hossian, 2015).
In their study, Javadian and Husseini (2014) found evidence demonstrating preservation of
business relationship significantly influenced the adoption of alternative dispute resolution
(ADR) in resolving conflicts in construction projects in Iran. Specifically, they contend the
inherent characteristics of dissimilar ADR methods including; enabling flexibility of proceedings
and ensuring fairness, reduced adversarial attitudes between contractors and clients and
avoidance of diminution of respect among parties led to their use in conflict resolution in
construction projects (Javadian and Husseini, 2014). Further, Alfadhli (2013) observed the need
to preserve business relationship presented a substantive influence on the use of ADR in
resolving disputes in construction projects in Kuwait. In particular, they argued inherent
attributes of ADR methods such as the elimination of hostile enforceability, flexibility of
proceedings and avoidance of diminution of respect among parties resulted to their adoption in
settling construction disputes (Alfadhli, 2013). However, Besaiso, Fenn and Emsley (2016)
established that failure to appreciate the need for preservation of business relationship presented
a substantial adverse influence on use of ADR in settling disputes in construction projects in The
Palestine State. Additionally, they assert the ineffective application of mediation proceedings
that witnessed hostile enforceability of decisions, resulted to suspicions of unfairness in dispute
settlement and increased occurrences of diminution of respect among parties significantly
contributed a negative influence on its use in resolving construction disputes (Besaiso, et al.,
2016).
Okpaleke, Otegbulu and Emele, (2016) established the strong desire to realize preservation of
business relationships presented a substantial influence on use of alternative dispute resolution
(ADR) in resolving conflicts in construction projects in Nigeria. In particular, they contend the
inherent advantageous features of ADR methods that ensure fairness in settlement of disputes
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and reduced adversarial attitudes between clients and contractors were pivotal in the adoption of
negotiation and mediation in settling disputes in construction projects (Okpaleke, et al., 2016).In
a study, Balogun, Ansary and Thwala (2017) found evidence demonstrating that the need for
preservation of business relationships presented considerable influence on use of ADR in
resolving conflicts in construction projects in South Africa. Specifically, they argued ADR
methods; mediation, negotiation and arbitration had facilitated flexibility of dispute proceedings
and eliminated hostile enforceability contributing to their use in solving conflicts in construction
projects (Balogun, et al., 2017). Similarly, Ntiyakunze (2011) observed the need for preservation
of business relationships significantly influenced the use of ADR in settling of disputes in
construction projects in Tanzania. In particular, they argued due to it numerous advantages such
as avoidance of hostile enforceability and ensuring of fairness, negotiation was adopted in
solving several disputes in the construction industry (Ntiyakunze, 2011).
Cost Minimization and Use of Alternative Dispute Resolution in Construction Projects
In their study, du Preez, Berry and Oosthuizen (2010) found evidence demonstrating that
objectives geared towards cost minimization lead to the use of alternative dispute resolution
(ADR) to solve conflicts in construction projects in the Netherlands. Specifically, they observed
the need to eliminate costs associated with litigation and those linked to project cost-overruns
informed decision to adopt ADR for resolving of construction projects disputes (du Preez, et al.,
2010). Similarly, Henry Fisher (2017) found the need to put in place measures that would ensure
costs are minimized in the event of disputes significantly contributed to the use of (ADR) in
solving conflicts in construction projects in both England and Wales. In particular, they argued
parties involved in construction contracts adopted ADR mainly driven by the desire to eliminate
costs associated with litigation, reduce occurrences of projects costs-overruns and project related
losses (Henry Fisher, 2017). However, Cavaleri (2018) found evidence that established most
parties involved in construction disputes opted out of ADR at a later stage due to high hidden
costs associated with it in Denmark. Specifically, she argued that arbitration presented extra
management costs that were considered high in comparison to the contract financial position
resulting to most disputes been litigated (Cavaleri, 2018).
In his study, Abeynayake (2017) observed parties in construction disputes were more inclined to
adopt alternative dispute resolution (ADR) to solve their conflicts emerging within the
construction projects in Sri Lanka. In particular, he argued the need to uphold contract financial
standing, eliminate litigation costs and avoid occurrences of project cost-overruns informed
decisions by majority clients and contractors to use ADR in resolving their issues (Abeynayake,
2017). Similarly, Hayati, Latief, Rarasati and Sasmita (2017) established predominant project
goal of cost minimization significantly influenced the use of ADR in resolving disputes
emerging in construction projects in Indonesia. Additionally, they contend the need to eliminate
high costs linked to litigation and to avoid project related losses led to the adoption of ADR
methods such as negotiation and mediation in solving of conflicts at construction sites (Hayati, et
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al., 2017). In a study Zuhairah, Azlinor and Rozina (2010) also found evidence demonstrating
that project’s cost minimization objectives influenced the use of ADR in settling disputes in
construction projects in Malaysia. Specifically, they postulate the need to uphold contract
financial standing and avoid high costs associated with litigation led to the adoption of
arbitration, mediation and negotiation in resolving a substantive number of conflicts in
construction projects (Zuhairah, et al., 2010).
Saeb, Mohamed, Danuri and Zakaria (2018) established the need to reduce costs associated with
litigation significantly influenced the adoption of alternative dispute resolution (ADR) to solve
disputes in construction projects in the Iran. Additionally, they contend requirements to uphold
contract financial standing, the need to avoid occurrences of project cost-overruns and other
project related losses had informed decision to embrace ADR in resolving of construction
disputes (Saeb, et al., 2018). Further, in his study Salem (2015) found evidence indicating project
goals of costs minimization significantly influenced the use of ADR in resolution of disputes that
emerged in construction projects in the Kingdom of Bahrain. Specifically, he argued the need to
avoid high costs associated with litigation and occurrences of project cost-overruns lead to the
embracing of ADR in resolving majority of disputes in construction projects (Salem, 2015).
However, Taş and Fırtına (2015) in their study established that there was limited use of ADR in
resolving of disputes in construction projects in Turkey. Specifically, they observed despite the
cost minimization nature of Dispute Review Boards (DRB) majority of parties involved in
construction disputes opted for litigation in resolving their conflicts (Taş and Fırtına, 2015).
In their study, Ezeokoli, Ugochukwu, Kaetonna and Agu (2018) observed cost minimization
objectives predominantly influenced the adoption of alternative dispute resolution (ADR) to
solve disputes in construction projects in Nigeria. Specially, they note the desire to avoid high
costs linked to litigation and incidences of project cost-overruns significantly contributed to
embracing of mediation, negotiation and arbitration in settling of conflicts in construction
(Ezeokoli et al., 2018). Further, Mashwama, Aigbavboa and Thwala (2016) found evidence that
indicated projects’ goals whose main aim was to reduce costs influenced the use of ADR to solve
disputes in construction projects in the Swaziland. In particular, they observed the need to
address projects’ diminishing profit margins brought about by project cost-overruns and
requirements to uphold contract financial standing significantly contributed to the formation of
Dispute Review Boards (DRB), negotiations and mediations for resolution of construction
disputes (Mashwama, et al., 2016). Similarly, Rwelamila (2010) established project aims linked
to costs minimization significantly influenced the embracing of ADR in resolving of disputes in
construction projects in South Africa. Specifically, they identified the need to avoid high costs
associated with litigation, occurrences of project cost-overruns and related losses as to have
informed decision to adopt mediation in settling disputes in construction projects (Rwelamila
2010).
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Communication and Documentation Issues and Use of Alternative Dispute Resolution in
Construction Projects
In their study, Menassa and Peña Mora (2010) established that communication and
documentation issues influenced the use of alternative dispute resolution (ADR) to determine
disputes in construction projects in the United States of America (USA). In particular, they
argued that desire to uphold confidentiality and privacy of proceedings informed decisions to
adopt extensive use of Dispute Review Boards (DRBs) to settle construction disputes (Menassa
and Peña Mora, 2010). Aitken and Stitchkin (2018) also observed communication and
documentation issues presented a substantial influence on the use of ADR to solve disputes in
construction projects in Chile. Additionally, they contend the inherent features of litigation that
entails voluminous documents, the need for both confidentiality and privacy in proceedings
significantly contributed in the embracing of Dispute Review Boards (DRBs) and mediation as
the approaches of determining construction disputes (Aitken and Stitchkin, 2018). Similarly,
Gray, Bravo and Alarcón (2015) established communication and documentation issues had a
considerable influence on decisions to adopt ADR in resolving construction projects in Peru.
Specifically, they assert the need to uphold confidentiality in dispute areas, privacy in
proceedings and avoidance of voluminous documentation associated with litigation informed
decisions for the extensive embracing of ADR methods such as DRBs and negotiations in
construction disputes (Gray, et al., 2015).
Agapiou and Clark, (2011) found evidence postulating that communication and documentation
issues influenced the use of alternative dispute resolution (ADR) to determine disputes in
construction projects in Scotland. Specifically, they assert strong desire for confidentiality and
privacy of proceedings coupled with voluminous documentation linked with litigation presented
a substantial contribution to decisions to adopt mediation to resolve majority of construction
disputes (Agapiou and Clark, 2011). However, in their study Gregory-Stevens, Frame and
Henjewele (2016) established issues related to communication and documentation presented a
substantial adverse influence on use of ADR in resolving disputes in construction projects in
England. Additionally, they assert erroneous reporting of information coupled with the
unavailability of support documents contributed to the limited embracing of mediation as a
dispute resolution approach in construction projects (Gregory-Stevens, et al., 2016).
In his study, Ameer Ali (2010) found evidence demonstrating issues related to communication
and documentation had significantly influenced decisions to adopt alternative dispute resolution
(ADR) to determine disputes in construction projects in Malaysia. Additionally, he asserts that
the need to uphold privacy and confidentiality in proceedings coupled with desire to avoid
voluminous documentation associated with litigation contributed to an increase in the use of
mediation to resolve construction disputes (Ameer Ali, 2010). However, Cheung and Chow
(2011) observed communication and documentation issues presented a considerable adverse
influence to the use of ADR in resolving disputes in construction projects in Hong Kong.
Specifically, they assert Construction Project Dispute Negotiations (CPDN) failed predominantly
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due to erroneous reporting of information and unobtainable support documents significantly
contributing to minimal use of this ADR method in determining construction disputes (Cheung
and Chow, 2011). Similarly, Sakate and Dhawale (2017) found evidence postulating issues
associated with communication and documentation had a substantial adverse influence on the use
of ADR in resolving disputes in construction in India. In particular, they assert erroneous
recording of information and the unavailability of support documents informed decisions to
litigate as opposed to embrace mediation, negotiation, conciliation and arbitration as dispute
determining approaches in construction projects (Sakate and Dhawale, 2017).
In their study, Dikbas and Ilter (2010) found evidence postulating that issues linked to
communication and documentation presented a significant negative influence on use of
alternative dispute resolution (ADR) in resolving disputes in construction projects in Turkey. In
particular, they observed erroneous reporting of information coupled with unobtainable support
documents adversely influenced decisions to adopt mediation as a dispute resolving approach in
construction projects (Dikbas and Ilter, 2010). Al-Humaidi (2014) also established that issues
linked to communication and documentation presented a substantial negative influence on use of
alternative dispute resolution (ADR) in resolving disputes in construction projects in Kuwait.
Additionally, they observed faulty recording of information, substandard communication in
presenting claims and unavailability of support documents adversely influenced the embracing of
arbitration in determining construction disputes (Al-Humaidi, 2014).Similarly, Besaiso, Fenn
and Emsley, (2018) observed dissimilar findings noting issues emerging from communication
and documentation had a considerable adverse influence on decisions to adopt ADR to solve
disputes in construction projects in the state of Palestine. Specifically, they assert erroneous
recording of information and substandard communication in presenting claims linked to some
ADR methods significantly contributed to the use of litigation as opposed to arbitration in
construction disputes (Besaiso, et al., 2018).
Isa and Emuze, (2016) established that communication and documentation issues influenced the
use of alternative dispute resolution (ADR) in resolving disputes in construction projects in
Nigeria. In particular, they argued that the strong desire for confidentiality and privacy of
proceedings coupled with voluminous documents linked to litigation informed decisions to
embrace negotiation and mediation in determining of construction disputes (Isa and Emuze,
2016). Similarly, Nyarko (2015) found evidence demonstrating that communication and
documentation issues substantially influenced decisions to adopt ADR in determining disputes in
construction projects in Ghana. Specifically, they assert the need to avoid voluminous documents
related to litigation and desire to realize privacy in proceedings significantly contributed to the
use of conciliation, mediation and negotiation ADR methods in solving construction disputes
(Nyarko, 2015). However, in their study Du Preez (2012), observed issues linked to
communication and documentation presented a considerable adverse influence on use of ADR in
determining disputes in construction projects in South Africa. Additionally, he contends
substandard communication in presentation of claims and erroneous recording of information
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significantly contributed to the minimal employment of ADR methods in resolving of
construction disputes (Du Preez, 2012).
THEORETICAL FRAMEWORK
Theory of Planned Behavior (TPB)
Developed by Ajzen and Fishbein, (1980) the Theory of Planned Behavior (TPB) is anchored on
the premise that individuals espouse distinct behaviors that are subject to the overriding control
of their inclinations or views towards those behaviors and the personal norms surrounding those
behaviors. Further, Ajzen (1991) assert the more intense an intention that a person has to perform
a particular behavior, the higher the probability the individual will become involved in the
behavior. Desire or aspiration according to this theory is anchored on three aspects; attitudes
with respect to the behavior, individualized or distinctive standards and deemed behavioral
control (Ajzen, 1985).
Marzouk and Moamen, (2009) proponents of the use of the Theory of Planned Behavior (TPB)
in studying disputes in construction projects, assert TPB is embraced to argue that selection and
application of Alternative Dispute Resolution (ADR) approaches is well-thought-out and
intentional. Additionally, they argue TPB is appropriate for researching adoption of ADR in
resolving disputes in construction projects as it clearly elucidates; attitude, subjective norm and
deemed behavioral control in the decision making process of settling on which ADR method to
use (Marzouk and Moamen, 2009). Marzouk, El-Mesteckawi and El-Said, (2011) other
proponents argued decisions to embrace a particular ADR approach that arises from social
coercions or obligations such as; legal systems, local customs and culture are considered to be
under the subjective norm of TPB. They also observed the application of ADR approaches in
resolving construction disputes is also guided by their inherent merits that allow for cost
minimization and fairness these categorized under attitude (Marzouk, et al., 2011).
In adopting this theory to the current research, it is argued that decision on which ADR approach
to use by parties to a construction dispute are anchored by; their frame of mind, subjective norm
and deemed behavioral control which are guided by their knowledge of Alternative Dispute
Resolution (ADR), past experience on flexibility of proceedings, fairness, level of hostility
involved during enforceability of decisions and the inherent capability of ADR to preserve
relationships. Additionally, the theory is used to argue that parties to a construction project
dispute settle on ADR depending on their financial status this predominantly defining their desire
to engage to litigation and costs associated with it. Research questions one, two and three that is;
lack of awareness, preservation of business relationships and cost minimization were adequately
answered by this theory.
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Transaction Cost Economics Theory (TCE)
Formulated by Williamson (1975), the Transactions Cost Economics Theory (TCE) is based on
the premise that the preferred among optional institutional arrangements (governance structures)
is arrived at by contrasting of the costs of transacting found within a distinct structure. Further,
Williamson (1996) asserts transactors prefer management frameworks as a way of reducing the
costs of making their transactions. Under the TCE costs are categorized as; production costs
which encompass land, labour, capital and materials and the transaction costs which he linked
with contriving as well as administering the business relationship (Williamson, 1996).
Additionally, Conlin, Langford and Kennedy (1996) proponents of the Transaction Cost Theory
argued in construction projects disputes, Transaction costs refer to the costs that are linked to
litigation, those that are associated in establishing partnerships and Dispute Review Boards
(DRBs). In particular, they embody; financial, legal, and technical advisory costs incurred by
contractors, consultants and or clients involved in construction contract dispute (Doree, 1994;
Yates, 1998). In adopting this theory to the current research, it is argued that in order to minimize
costs associated with litigation clients, contractors and consultants in the construction discipline
should be ready to adopt alternative dispute resolution (ADR) approaches that provide for this.
The ADR approaches embraced must assist in; elimination of litigation costs, avoidance of
project costs-overruns and lead to the realization of reduced construction projects’ related losses
Research questions three is adequately answered by this theory.
Stair-Step Model of Dispute Resolution
Formulated by O’reilly and Mawdesley, (1994) the Stair-Step Model of Dispute Resolution is
anchored on the premise that different types of Alternative Dispute Resolution (ADR) methods
present dissimilar levels of animosity and cost.
Figure 1: Stair-Step Model of Dispute Resolution
Increase Hostility and Cost
Arbitration
Adjudication/Administrative
Decisions
Mediation
Negotiation
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Cheung (1999) a proponent of the Stair-Step Model of Dispute Resolution argued that as parties
to a construction dispute chose an ADR method and rise from negotiation towards arbitration so
does hostility towards each other increase and the costs involved in resolving the dispute. This
adversely affects relationship among contractors, consultants and their clients (Cheung 1999).
Uff (2005) another proponent of the model observed communication and documentation issues
also arise as parties to a dispute move from negotiation towards arbitration. The model was used
to support study variables preservation of business relationships, costs minimization and
communication and documentation issues.
RESEARCH METHODOLOGY
Research Design
A research design is defined as the blueprint chosen by a researcher providing guide lines to the
collection, measurement and analysis of data with the overall objective of effectively addressing
the research problem (Leedy & Ormrod, 2010). It is composed of the outline or layout for the
gathering, evaluation, as well as analysis of data. To achieve study objectives, this research
adopted a descriptive survey research design. Survey design guided the process of undertaking
an investigation on critical factors influencing use of alternative dispute resolution in
construction projects disputes in Imenti North Sub County, Meru County. Descriptive survey
design was the optimal design for this study in that it facilitated the gathering of both qualitative
and quantitative data establishing the link between study variables and study problem
(Christensen, Johnson & Turner, 2011). Descriptive survey research design was also espoused
because it facilitated the process of information gathering on the current state of affairs and
thoroughly depicting traits of the study population (Salaria, 2012).
Target Population
Population is defined as the entire categorization of persons or items to which a researcher has
interest in generalizing findings (Kothari, 2012). The target population of this study was 255
consultants and contractors working in the target construction projects and the clients of these
projects. The choice of these respondents was informed by the expectation that they are familiar
with the variables under study and therefore provided the necessary data required.
Sample Size and Sampling Procedure
Sampling refers to the techniques used to select a subset of individuals or objects from the larger
study population with the goal of depicting the particular population (Emmel, 2013). The sample
size for the investigation was 155 drawn from a targeted population of 255 respondents. The
figure was obtained by applying the Yamane (1967) formula;
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This was calculated as illustrated in 3.4.2 on sampling procedure. The accessible population for
this study was 255 respondents. For proportionate selection of respondents, Yamane (1967)
recommend the formula:
According to the formula: n= the calculated sample size; N= the size of the target population; e=
the error of 5 percentage points
Using the formula the sample size was:
Contractors =
Consultants (Architecture, Quantity Surveyor and Structural Engineers) =
= 14
Clients =
The sampling approaches that were employed in this research were; Stratified and Simple
Random sampling techniques. This was because the target population was grouped into three
dissimilar categories; stratified sampling ensured accurate and or adequate representation of the
dissimilar study’s respondents to enhance representation of variables linked to them. Simple
random sampling was then employed to single out the sampled subjects proportionately from
different strata (Lohr, 2010).
Research Instruments
Questionnaires were used to collect primary data. Krosnick and Presser (2010) define a
questionnaire as a structured research tool that is used for research purposes to collect data from
respondents on issues affecting them or others. The choice of this research instrument was
informed by its inherent advantages including; inexpensive, non-laborious to administer to a
large sample and respondents have sufficient time to provide meticulously thought out responses.
(Krosnick & Presser, 2010). This research study’s questionnaire embodied closed as well as open
ended questions. Closed questions integrated a fixed set of questions on which sampled subjects
was required to provide their responses in a particularized sequence and with pre-defined
response alternatives. Open ended questions do not confine or limit the respondents to certain
perspectives but grant them with the possibilities to reveal data in a realistic manner.
Questionnaire is sub-divided in 6 segments. The first segment requested the sampled subjects to
fill in his or her bio data, while the remaining 5 segments were composed of variables on which
the study investigated. Portions of the questionnaire were; Lack of Awareness, Preservation of
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Business Relationships, Cost Minimization and Communication and Documentation Issues and
Alternative Dispute Resolution in Construction Projects.
Data Collection Procedures
Primary data was collected by applying the utilization of questionnaires and these were
distributed both in person and with the help of research assistants. The interactive approach to
the sampled subjects was employed. Structured questionnaires were utilized guided by the fact
they are easy to administer as individual items are accompanied by optional answers and are
additionally economical with respect to time and financial resources. As a measure of securing
an appropriate or agreeable response rate, a register of distributed questionnaires were developed
as this aided in trailing of this data gathering instrument.
Data Analysis Techniques
Data analysis is elucidated as the procedure that involves the packaging of collected data,
formulating and classifying its main elements to such an extent that it is comfortably and
effectively conveyed (Steven, Brady and Patricia, 2010).Primary data was categorized, compiled,
coded and analyzed to enhance the elimination of data errors and the inconsistence of elements.
To ensure that primary data was analyzed in a reliable way; SPSS version 22.0 was used (Pallant,
2011). Analyzed data presentation used descriptive statistic consisting of; frequencies, mean,
standard deviation and variance. Results of the analysis made it easy to make valid conclusions,
deductions and inferences on the problem been researched by the study. Data from open ended
questions was analyzed by applying the content analysis approach. This entailed open coding,
creating categories and abstraction. Results using this technique were presented in themes guided
by the research’s objectives individually. Frequencies and percentages were applied to
encapsulate information. With the view of determining the unique influence and significance of
distinctive research study’s four variables with respect to alternative dispute resolution in
construction projects and obtain inferential statistics, a multivariate regression model was
employed. This is an adjustable technique of data analysis that was applicable in the occasion
that one sought to examine the association between the dependent variable any other factors. The
correlation was linear which was translated that the magnitude to which the variations in the
dependent variable was connected to the variations in the independent variables (Brian &
Graham, 2010). The analysis aided in arriving at valid inference on the topic being researched
on. The regression model was presented as:
Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + ε
Where: Y = Alternative Dispute Resolution in Construction Projects; β0 = Constant Term; β1,
β2, β3 and β4 = Beta coefficients; X1= Lack of Awareness; X2= Preservation of
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Business Relationships; X3= Cost Minimization; X4= Communication and
Documentation Issues’; ε = Error term
RESEARCH RESULTS
The study sought to establish the influence of lack of awareness on use of alternative dispute
resolution in construction projects in Imenti North Sub County. The study found that
insufficiency of understanding of arbitration does not influence alternative dispute resolution in
construction projects disputes. The study also found that scarcity of knowledge on mediation
does influence use of alternative dispute resolution in construction projects disputes. Further, the
study found that minimal knowledge on conciliation influences use of alternative dispute
resolution in construction projects disputes. Also, it was found that inadequacy of understanding
of negotiation influences use of alternative dispute resolution in construction projects disputes.
The study also aimed at examining the influence of preservation of business relationships on use
of Alternative Dispute Resolution in Construction Projects in Imenti North Sub County. The
study found that reduced adversarial attitudes and hostility between client, contractor, quantity
surveyor and architecture influence use of alternative dispute resolution in construction projects
disputes. Also, the study established that flexibility of proceedings and fairness influences use of
alternative dispute resolution in construction projects disputes. The study found that avoidance of
diminution of respect among parties influence use of alternative dispute resolution in
construction projects disputes and that elimination of hostile enforcement influences use of
alternative dispute resolution in construction projects disputes.
The study sought to determine the influence of cost minimization on use of Alternative Dispute
Resolution in Construction Projects in Imenti North Sub County. The study found that extra
management costs do not influence use of alternative dispute resolution in construction projects
disputes. The study found that elimination of litigation costs influences use of alternative dispute
resolution in construction projects disputes and that reduction of project related losses influences
use of alternative dispute resolution in construction projects disputes. The study found that
project costs over-runs influence use of alternative dispute resolution in construction projects
disputes and that contract financial standing influences use of alternative dispute resolution in
construction projects disputes.
The study sought to establish the influence of communication and documentation issues on use
of Alternative Dispute Resolution in Construction Projects. The study found that privacy of the
proceedings influences use of alternative dispute resolution in construction projects disputes.
Also, the study found that erroneous reporting of information influences use of alternative
dispute resolution in construction projects disputes and that voluminous litigation documents
influences use of alternative dispute resolution in construction projects disputes. Further, the
study found that unobtainable support documents do not influence use of alternative dispute
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resolution in construction projects disputes and that confidentiality of dispute issues/areas and
proceedings influences use of alternative dispute resolution in construction projects disputes.
The research sought to establish the extent of reliability that measures of use of alternative
dispute resolution had in construction projects disputes in Imenti North Sub-County. The study
found that the number of disputes resolved using mediation and the duration of the proceedings
were reliable measures of use of alternative dispute resolution in construction projects disputes in
Imenti North Sub-County to a very great extent. Also, the study found that irrevocability of the
settlement, increase in the number of negotiated disputes in construction and disputes resolved
using arbitration were reliable measures of use of alternative dispute resolution in construction
projects disputes in Imenti North Sub-County to a great extent.
INFERENTIAL STATISTICS
The researcher conducted both Pearson moment correlation analysis and the multiple regression
analysis. Pearson moment correlation was conducted to establish the strength of the level of
association while multiple regression was done to establish the relationship between variables.
Pearson’s Product Moment Correlation
A correlation is a number between -1 and +1 that measures the degree of association between
two variables. A positive value for the correlation implies a positive association while a negative
value for the correlation implies a negative or inverse association. The findings were as shown in
Table 1.
Table 1: Correlation Coefficients Matrix
Alt
ern
ati
ve
Dis
pu
te
Res
olu
tion
in
Con
stru
ctio
n
Lack
of
Aw
are
nes
s
Pres
ervati
on
of
Bu
sin
ess
Rel
ati
on
ship
s
Cost
s M
inim
izati
on
Com
mu
nic
ati
on
an
d D
ocu
men
tati
on
Issu
es
Alternative Dispute
Resolution in Construction
Pearson Correlation 1
Sig. (2-tailed) .
Lack of Awareness Pearson Correlation .786 1
Sig. (2-tailed) .047 .
Preservation of Business
Relationships
Pearson Correlation .865 .637 1
Sig. (2-tailed) .009 .008 .
Costs Minimization Pearson Correlation .836 .451 .523 1.
Sig. (2-tailed) .012 .019 .016
Communication and
Documentation Issues
Pearson Correlation .825 .518 .597 .531 1
Sig. (2-tailed) .039 .005 .028 .014 .
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The analysis of correlation results between the use of alternative dispute resolution in
construction projects in Imenti North and lack of awareness shows a positive coefficient 0.786,
with p-value of 0.047. It indicates that the result is significant at α =5% and that if the lack of
awareness increases it will have a positive impact on the use of alternative dispute resolution in
construction projects in Imenti North. The correlation results between preservation of business
relationships and the use of alternative dispute resolution in construction projects in Imenti North
also indicates the same type of result where the correlation coefficient is 0.865 and a p-value of
0.009 which significant at α = 5%.
The results also show that there is a positive association between costs minimization and the use
of alternative dispute resolution in construction projects in Imenti North where the correlation
coefficient is 0.836, with a p-value of 0.012. The results also show that there is a positive
relationship between communication and documentation issues and the use of alternative dispute
resolution in construction projects in Imenti North where the correlation coefficient is 0.825,
with a p-value of 0.039. Nevertheless, the positive relationship indicates that when the practice
of the afore-mentioned factors is in place the use of alternative dispute resolution in construction
projects in Imenti North increases.
Multiple Regression Analysis
The multiple regression analysis was used to test the relationship between the variables where it
shows how the dependent variable is influenced by the independent variables. The results were
as shown in Table 2, 3 and 4.
Table 2: Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 0.893 0.797 0.791 0.808
From the results, the adjusted R square was 0.791. This implies model highly fits the data since
the Adjusted R square was more than 0.7 and that lack of awareness, preservation of business
relationships, costs minimization and communication and documentation issues explain 79.1% of
the variation in use of alternative dispute resolution in construction projects in Imenti North. The
remaining 20.9% accounted for the factors influencing use of alternative dispute resolution in
construction projects in Imenti North that are not covered in this study.
Table 3: ANOVA Test
Model Sum of Squares df Mean Square F Sig.
1
Regression 323.133 4 80.783 120.857 .000
Residual 82.216 123 0.668
Total 405.349 127
From the ANOVA Table, the p-value was 0.000 and the calculated F-value was 120.857. This
shows that the overall regression model was significant in predicting the outcome of use of
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alternative dispute resolution in construction projects in Imenti North based on the values of lack
of awareness, preservation of business relationships, costs minimization and communication and
documentation issues since p-value was less than 0.05 and F-calculated was greater than F-
critical (2.445).
Table 4: Coefficients of Determination
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
(Constant) 1.136 0.182 6.242 .000
Lack of Awareness 0.612 0.208 0.739 2.942 .004
Preservation of Business
Relationships
0.736 0.296 0.784 2.486 .015
Costs Minimization 0.701 0.311 0.680 2.254 .030
Communication and
Documentation Issues
0.675 0.239 0.718 2.824 .007
The established model for the study was:
Y= 1.136 + 0.612X1 + 0.736X2 + 0.701X3 + 0.675X4
Where: Y= Use of alternative dispute resolution in construction projects in Imenti North;
β0=constant; X1= Lack of Awareness; X2= Preservation of Business Relationships; X3=
Costs Minimization; X4= Communication and Documentation Issues
The regression equation above has established that taking (lack of awareness, preservation of
business relationships, costs minimization and communication and documentation issues), use of
alternative dispute resolution in construction projects in Imenti North will be 1.136. The findings
presented also show that taking all other independent variables at zero, a unit increase in the lack
of awareness significantly leads to an increase in the score of use of alternative dispute resolution
in construction projects in Imenti North as shown by B=0.612 and p-value of 0.004.
Further, the study revealed that a unit change in preservation of business relationships would
significantly lead to 0.736 increase in the score of use of alternative dispute resolution in
construction projects in Imenti North since p-value (0.015) was less than 0.05. Moreover, if all
other factors are held constant at zero, a unit increase costs minimization significantly leads to
increase in use of alternative dispute resolution in construction projects in Imenti North as shown
by a regression coefficient of 0.701 and p-value of 0.030. The study also revealed that a unit
change in communication and documentation issues would significantly lead to 0.675 increase in
the score of use of alternative dispute resolution in construction projects in Imenti North since p-
value (0.007) was less than 0.05.
Overall, preservation of business relationships had the greatest influence on use of alternative
dispute resolution in construction projects in Imenti North, followed by costs minimization,
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followed by communication and documentation issues while lack of awareness had the least
influence on the use of alternative dispute resolution in construction projects in Imenti North.
CONCLUSIONS
The study concluded that lack of awareness has a positive and significant influence on use of
alternative dispute resolution in construction projects in Imenti North Sub County. The study
concluded that minimal knowledge in conducting of arbitration, conciliation, mediation and
negotiation proceedings significantly contributes to the limited use of ADR methods in resolving
construction disputes resulting to the increased use of litigation.
The study concluded that preservation of business relationships has a strong and positive
significance on the use of alternative dispute resolution in construction projects in Imenti North
Sub County. The study deduced that inherent characteristics of dissimilar ADR methods
including; enabling flexibility of proceedings and ensuring fairness, reduced adversarial attitudes
between contractors and clients and avoidance of diminution of respect among parties lead to use
in conflict resolution in construction projects.
The study concluded that cost minimization has a positive significance on the use of alternative
dispute resolution in construction projects in Imenti North Sub County. The study concluded that
there is need to avoid high costs associated with litigation, occurrences of project cost-overruns
and related losses as to have informed decision to adopt mediation in settling disputes in
construction projects.
The study concluded that communication and documentation issues influence use of Alternative
Dispute Resolution in Construction Projects significantly. The study concluded that erroneous
recording of information and the unavailability of support documents informs decisions to
litigate as opposed to embrace mediation, negotiation, conciliation and arbitration as dispute
determining approaches in construction projects.
RECOMMENDATIONS
The study recommends that there is need for high profile public promotional campaigns. The
campaigns would need to be continuous since most users of ADR services tend to believe that
they are one-off users who may never again have a significant land dispute. A promotional
campaign specifically targeted at those people who are regular users of the justice system
including National and County government agencies and the public. There is also need for the
development of information materials about ADR, including the various sorts of ADR, and about
the sorts of services they provide. There is also need for development of pamphlets, videos, or
booklets setting out people’s basic legal entitlements in relevant areas.
The study also recommends that supplies should be exhaustively elaborated and detailed in the
contract conditions, designs and specifications i.e. nullify, if possible, opportunities for differing
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interpretations of the requirements of the documents. There is also a need that site investigations
and designs should be adequately complete prior to processing construction contracts,
The study recommends that the clients, contractors and consultants should ensure that they have
adequate and correct appreciation of their respective professional and ethical obligations. Both
contractors and consultants should attend seriously to their tasks and assignments as outlined in
the contract document. The study also recommends that documentation of project’s progress
work force, weather, equipment, correspondence all events on timely bases should be kept
meticulously by the contractor and copy to the consultant timely.
The study recommends that there should be an improvement on the long processes of payment
approval and effecting by consultants and clients respectively. The study also recommends that
the contacts should be clear in the costs as parties involved in construction tend to opt out of
ADR due to high hidden costs this is because arbitration presents extra management costs that
were considered high in comparison to the contract financial position resulting to most disputes
been litigated.
The study recommends that partnering works well to prevent disputes. Accordingly, best
adjudication or arbitration approach for construction projects would be started with partnering
and relying on direct negotiation. Clients have to consider contractors as their fellow business
collaborates, where they have called them to fill the gap they want them in their project set-ups.
There shall be mutual understanding in their contract agreement. No one is subordinate to the
other, those who made contractual agreement possess equal legal right. This requires the clients
to be reasonable in discharging their contractual obligation diligently.
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